XRP's $11 Billion Rebound: A Flow Analysis of the Crash and Recovery

XRP's violent sell-off was a classic leveraged unwind. The token plunged over 16 percent to about $1.29, making it the worst performer as Bitcoin fell 7%. This sharp drop was amplified by forced selling in derivatives, with roughly $46 million in XRP derivatives liquidations recorded in the 24 hours.

The breakdown shows the unwinding was almost entirely from long positions. Of that total, nearly $44 million represented wiped-out long positions. This pattern-where a break below key technical support triggers a cascade of stop-losses-explains the late-session drop and the subsequent shift of support at $1.44 into resistance.

Despite recent Ripple regulatory wins and institutional developments, sentiment remained weak. The fact that these positive fundamentals failed to buoy price underscores the immediate reality: XRP's near-term trajectory is dominated by positioning and momentum, not fundamentals. The crash was a liquidity event, not a fundamental reassessment.

The Rebound: Aggressive Accumulation

The flow of capital back into XRP was massive and immediate. In a single session, more than $11 billion flowed back into the token, driving its market cap from $77.86 billion to $89.14 billion. This surge in buying pressure pushed the price roughly 13% higher, a move that amplified the broader market's stabilization.

On-chain data reveals decisive accumulation by large players. During the dip, 1,389 whale transactions worth more than $100,000 were recorded on the XRP Ledger, the highest level in four months. This pattern of concentrated buying by whales is a classic signal that large holders are stepping in to accumulate during periods of capitulation.

Network participation surged in tandem, confirming broad-based interest. The number of unique active addresses jumped to 78,727 within a single eight-hour window, hitting a six-month high. This spike in on-chain activity, driven by both whales and active traders, provides strong evidence that the rebound was fueled by a coordinated flow of capital moving to buy the dip.

Flow Context and Forward Watch

The rebound occurred as broader crypto markets stabilized, but XRP's recovery outpaced the sector's bounce. While the entire digital asset market was recovering from a sell-off, XRP's price action was amplified, with the token gaining roughly 13% over the same 24-hour period as Bitcoin and others began to stabilize. This pattern of a snapback move is common during volatility-driven recoveries, where the initial panic selling is followed by a relief rally that often sees the most volatile assets lead the charge higher.

For sustainability, watch for a slowdown in whale transaction volume and address growth. The earlier accumulation was decisive, with 1,389 whale transactions worth more than $100,000 recorded during the dip-the highest level in four months. On-chain activity surged in tandem, as the number of unique active addresses hit a six-month high. Now that the rebound is underway, expect these metrics to slow down. If another isolated spike occurs while prices are rising, it could signal a top, as large holders may be taking profits after a major move.

The key support level remains the psychological $1.00 mark. The earlier crash saw XRP bottom near $1.15, and the next obvious magnet below current prices is $1.00. The drop below the $1.44 area effectively flipped that level from support into overhead resistance. With XRP still trading well below its key moving averages, the path of least resistance is likely lower unless a sustained break above the $1.44–$1.50 zone can be confirmed.